Why Specialty Vehicles Maker REV Group Shares Are Gearing Up Today
Portfolio Pulse from Akanksha Bakshi
REV Group, Inc. (NYSE:REVG) reported Q4 FY23 sales of $693.3 million, surpassing estimates of $666.13 million, driven by growth in Fire & Emergency and Commercial segments. Adjusted EPS was $0.53, beating the $0.34 consensus. Gross profit rose 42.9% to $95.5 million, with margins expanding to 13.8%. Adjusted EBITDA increased to $54 million from $33.5 million in 4Q22. Backlog grew to $4.46 billion. Operating cash flow for the fiscal year was $126.5 million, and the company declared a $0.05 per share dividend. FY24 outlook anticipates net sales of $2.6-$2.7 billion, adjusted net income of $82-$99 million, and free cash flow of $70-$85 million. REVG shares are up 5.33% in premarket trading.

December 13, 2023 | 2:21 pm
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POSITIVE IMPACT
REV Group reported strong Q4 results with sales and EPS exceeding expectations, significant gross profit increase, and a positive FY24 outlook. The company also declared a quarterly dividend.
The positive earnings report, with higher-than-expected sales and EPS, along with a strong FY24 outlook and dividend declaration, are likely to instill investor confidence and drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100